Roaring Economic Optimism Index hits 13year high credit to tax cuts
Despite this week’s stock market tumble, faith and optimism in the U.S. economy has hit a 13-year high, according to a leading poll on economic confidence.
The IBD/TIPP Economic Optimism Index jumped in February to 56.7 from 55.1, marking the 17th consecutive month in positive territory. A reading below 50 indicates pessimism while a reading above 50 signals optimism.
It’s not far from the all-time high of 62.9 in March 2002.
“The overall Economic Optimism Index reached its highest level since October of 2004, while the sub-index for the 6-month outlook stood at its highest since October of 2012,” said IBD’s Terry Jones. “Clearly, as far as optimism goes, there has been a major positive shift in sentiment, particularly evident since the December passage of Trump’s tax cuts.”